Ashiana Housing Q4 FY26 Bookings Surge 124% YoY

Ashiana Housing Limited Q4 FY26 Earnings Conference Call Summary

Operational Performance Highlights

Q4 FY26 Operational Metrics:

Value of area booked: ₹1,290 crores, representing 124% year-on-year growth and 225% sequential growth
Primary driver: Successful launch of Ashiana Aaroham Phase-I and Phase-II in Gurugram, contributing ₹833 crores in booking value
Average realization: ₹11,566 per square foot, up 71% year-on-year
Equivalent area constructed: 6.65 lakh square feet, increasing approximately 60% year-on-year
Pre-tax operating cash flow: ₹167 crores, up approximately 7% year-on-year

FY26 Full Year Operational Achievements:

Highest ever booking value: ₹2,421 crores, reflecting 25% year-on-year growth
Senior Living segment record bookings: ₹570 crores, registering 55% year-on-year growth
Execution: Equivalent area constructed increased 30% year-on-year to 226.19 lakh square feet
Customer collections: All-time high of ₹1,762 crores
Strong launch momentum across multiple markets: Jaipur, Bhiwadi, Gurugram, Chennai, Pune, Jamshedpur

Business Development and Expansion

Land Acquisitions and Portfolio Expansion:

Acquired 8.83 acres in Raigad, Maharashtra with estimated sales potential of ₹450 crores
Entered agreement for land parcel in Panvel, Maharashtra with estimated sales potential of ₹1,000 crores
Expanded Senior Living portfolio through strategic acquisitions in Chennai and Maharashtra, adding development potential of over 26 lakh square feet with estimated sale potential of approximately ₹3,200 crores
In April 2026, signed for another 2 million square feet in Mumbai-Pune region near Ashiana Amodh project in Vadgaon

Funding and Settlements:

Ashiana Aaroham Gurugram received funding support from IFC through allotment of ₹100 crores of listed unsecured redeemable NCDs
Settled long-term dispute relating to Project Maitri Kolkata and received ₹18.5 crores as full and final settlement against security deposit and related expenses

Financial Performance

Q4 FY26 Financial Results:

Total income: ₹335 crores, registering growth of approximately 46% year-on-year
EBITDA: ₹35 crores, growth of approximately 19% year-on-year
EBITDA margin: 10.43%
PAT: ₹21 crores, remaining broadly stable year-on-year
PAT margin: 6.26%

FY26 Full Year Financial Results:

Total income: ₹1,187 crores, more than doubling compared to FY25
EBITDA: ₹176 crores, registering growth of 281% year-on-year
EBITDA margin: 14.85%
PAT: ₹118 crores compared to ₹18 crores in FY25
PAT margin: 9.93%
Pre-tax operating cash flow: ₹577 crores (highest ever), registering growth of 34% year-on-year

Management Commentary and Strategic Direction

Senior Living Focus: Management emphasized strategic prioritization of Senior Living segment, citing structural demographic changes, rising urbanization, and increasing preference for community-based living among senior citizens. The segment offers strong long-term growth opportunity with limited organized supply.

Expansion Plans: The company plans to launch five Senior Living projects in the next 12-24 months with Gross Development Value (GDV) exceeding ₹6,500 crores across Chennai, Bangalore, and Mumbai-Pune regions. Additional projects are being sought in NCR region.

Capital Allocation: The company maintains focus on profitable growth with Return on Equity (ROE) as the primary metric. Capital allocation prioritizes business growth over shareholder returns via buybacks or dividends. Construction is primarily financed from customer advances rather than debt.

Market Strategy: The company intends to premiumize Senior Living offerings across different price points and maintain focus on existing markets (Jaipur, Bhiwadi, Jamshedpur) rather than expanding to new Tier-2/3 cities.

Project Specific Updates

New Project Launches Planned for FY27:

Ashiana Oma (Premium housing, Jaipur): ~10 acres, pricing expected ₹7,500-8,500/sq.ft, launch within couple of months
Ashiana Tattvam: Targeted launch in Q4 FY27
Ashiana Aaranya: Targeted launch in Q4 FY27
Aaroham Phase-III: Expected launch in FY27
Additional phases in Senior Living projects (Advik, Amodh, Vatsalya, Swarang)

Recent Acquisitions:

Vadgaon Project (April 2026): 28.5 acres on Mumbai-Pune highway, ~20 lakh sq.ft development, ~₹1,800-2,000 crores GDV
Bangalore Project: ~11 lakh sq.ft, pending completion of conditions precedent

Project Terminations:

Mahindra World City Jaipur project terminated due to delays in approvals beyond 18 months. Relationship maintained for future opportunities.

Financial Guidance and Targets

FY27 Targets:

Pre-sales: ₹2,200 crores
Senior Living sales: Target to cross ₹700 crores
Margin improvement expected compared to FY26
Target of 20%+ reported ROE

Long-term Targets:

FY30 target: ₹2,000 crore cumulative PAT
Margin profile expected to improve further in FY28

Risk Factors and Challenges Discussed

Construction Costs: Management expects 8-10% increase in construction costs in FY27 due to inflationary pressures. Strategy includes faster execution to mitigate inflation impact.

Market Conditions: Signs of potential oversupply in Gurugram and Pune markets noted, while Jaipur, Bhiwadi and Jamshedpur remain stable.

Legal Matters: Class action suit discussed regarding a project delivered 5-6 years ago. Company has approached Delhi High Court challenging class action applicability. Timeline for resolution uncertain.

Operational Challenges: Primary bottleneck identified as meeting delivery timelines due to material supply, execution scaling, and potential labor shortages.

Partnership Updates

Epoch Elder Care: Partnership for assisted living services in Bhiwadi (Nirmay Care Homes) and planned for Chennai (Ashiana Shubham). This represents outsourcing of care services to focus on active living components.

Regulatory Environment

Maharashtra Housing Policy 2025: Noted as encouraging for Senior Living development but not yet operationalized through development control regulations. MAHARERA regulations defining Senior Living requirements viewed positively for consumer confidence.